QUESTION 1 A and B formed a partnership. The following are their contributions: Cash A 500,000 Accounts receivable 100,000 Building Total 700,000 700,000 600.000 A capital B, capital Total 600,000 700,000 700,000 600,000 Additional information: • The accounts receivable includes an 8% of the account that is deemed uncollectible. • The building is under-depreciated by P50,000. • The building has an unpaid mortgage P100,000, which is not assumed by the partnership. Requirement: Provide the joumal entry to record the contributions of the partners in the partnership books.

QUESTION 1 A and B formed a partnership. The following are their contributions: Cash A 500,000 Accounts receivable 100,000 Building Total 700,000 700,000 600.000 A capital B, capital Total 600,000 700,000 700,000 600,000 Additional information: • The accounts receivable includes an 8% of the account that is deemed uncollectible. • The building is under-depreciated by P50,000. • The building has an unpaid mortgage P100,000, which is not assumed by the partnership. Requirement: Provide the joumal entry to record the contributions of the partners in the partnership books.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hide student question Time Left : 01 : 59 : 36 Student question On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $82,000 cash and Xie contributed land valued at $122,000 and a small building valued at $182,000. Also, the partnership assumed responsibility for Xie’s $132,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $92,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $62,000 and Xie withdrew $47,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $162,000. Required: 1. Present general journal entries to record the initial capital investments of the…
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